Enhancing strategic decision-making in retail POS acquisition

Amod Sahabandu
18 Jul, 2024

Problem statement
Insighture was engaged by a regional market leader specialising in Point of Sale (POS) solutions to assist in their acquisition of a major retail chain. This case study demonstrates how our thorough technology advisory services guided the technical due diligence process, uncovering pivotal insights that shaped decision-making and facilitated a successful acquisition.
Services offered
We commenced the engagement by conducting rigorous technical due diligence tailored for the POS solutions provider:
- We analysed the POS system's technology stack, assessing its scalability, compatibility with the acquiring company’s infrastructure, and adherence to industry standards.
- We then reviewed software development methodologies, team capabilities, and organisational structure to gauge alignment with best practices and operational efficiency.
- Due to the technology's unique characteristics, the team performed a full manual security scan of the code base. This involved meticulous examination to identify vulnerabilities and ensure robust cybersecurity protocols, as leading static code analysis tools were not compatible.
- An assessment of the operational workflows within the POS solution was completed, focusing on efficiency, reliability, and scalability to support the retail chain’s needs.
- We conducted performance tests to evaluate system responsiveness, uptime reliability, and scalability under varying operational conditions.
- Identified risks associated with technology dependencies, regulatory compliance, and market competitiveness specific to the POS industry.
Stakeholder interviews
Insighture conducted in-depth interviews with key stakeholders within the Client, including technical leads, product managers, and operations executives. These interviews provided valuable insights into strategic objectives, technological roadmaps, and operational challenges essential for informed decision-making.
Prototyping and Proof of Concept (PoC) Testing:
We developed prototypes and conducted PoC testing to validate critical aspects of the POS solution's performance, integration capabilities, and scalability. This hands-on approach provided tangible evidence of how well the solution aligned with the acquiring company’s infrastructure and operational needs.
Manual security scan
Given the unique technology constraints, Insighture conducted a full manual security scan of the POS solution’s code base. This detailed assessment aimed to identify vulnerabilities and ensure robust cybersecurity measures, as leading static code analysis tools were not applicable.
Final report delivery
Insighture delivered a comprehensive final report within agreed timelines, consolidating findings from technical assessments, interviews, and security evaluations. The report provided the Client with a clear understanding of the POS solution’s technological readiness, operational capabilities, and potential risks.
Outcome
Our meticulous technical due diligence revealed several key insights that shaped this Client’s decision-making process:
1. Knowledge capture gaps
The assessment revealed significant gaps in knowledge capture processes within the POS solution provider. These gaps included documentation deficiencies and knowledge silos that could potentially impact operational efficiency and future scalability.
2. Resource risks
Insighture identified risks related to resource availability and skill sets required for modernising the POS solution. This included the need for additional training and recruitment efforts to enhance technical capabilities and support ongoing system development.
3. Cost implications
The analysis highlighted substantial costs associated with modernising the POS solution’s technology stack and addressing knowledge capture gaps. Investments were needed in system upgrades, software redevelopment, and human capital to ensure alignment with industry standards and support future growth.
Decision to proceed
Based on the insights gained from Insighture’s technical advisory services, the Client confidently decided to proceed with the acquisition. They determined that despite the identified gaps in knowledge capture, resource risks, and modernisation costs, these factors did not pose significant barriers to achieving the strategic objectives set by the acquiring company.

Conclusion
As we move forward, we encourage stakeholders to leverage our expertise beyond this acquisition phase. Whether you're navigating complex technological integrations, enhancing operational efficiencies, or mitigating cybersecurity risks, we are committed to being your trusted partner in achieving sustained growth and competitive advantage in the retail sector.
Contact our Project Management Office today to explore how our tailored advisory services can empower your organisation to make informed decisions and drive transformative outcomes in POS technology acquisitions and beyond.

More about the author:
Amod Sahabandu
Amod is an Associate ML Engineer at Insighture, specialising in Generative AI, LLMOps, and Computer Vision. He has extensive experience in LLM fine-tuning, prompt engineering, and building production-ready AI solutions.